Marketing company, Interpublic Group of Companies, Inc.(IPG) reported increased profits on Friday, which beat analysts estimates. The company also announced that its board has approved an increase in dividends.
The New York, NY based company reported fourth quarter earnings of $313.3 million, or 68 cents per share, up 17% from $259 million, or 50 cents per share last year. Excluding special items, earnings were 56 cents per share, which beat analysts estimate of 53 cents per share.
Revenue for the quarter dropped slightly to $2.06 billion. Analysts expected to see $2.07 billion in revenue.
Additionally, the company reported that its board has approved an increase to its quarterly dividend. The dividend will increase from 6 cents per share to 7.5 cents per share. The dividend will be payable on March 25 to shareholders of record on March 11. The stock has an ex-dividend date of March 7. The board also approved a new share repurchase plan to buy back $300 million of common stock.
Interpublic Group of Companies shares were mostly flat during Friday morning trading. The stock has increased 13% in the past year.
The Bottom Line
With the dividend increase, shares of Interpublic Group of Companies, Inc.(IPG) will have a 1.96% yield, based on Friday morning’s price of $12.26.
Interpublic Group of Companies, Inc.(IPG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.